Bitfinex expands beyond crypto, launches equity derivatives that settle in Tether

Quick Take

  • Crypto exchange Bitfinex has launched equity index derivatives that settle in Tether (USDT) stablecoin.
  • The new derivatives — Europe 50 and Germany 30 perpetual swaps — offer exposure to traditional stock markets.
  • Bitfinex CTO Paolo Ardoino told The Block: “CME moved into crypto with bitcoin futures. Now Bitfinex is moving into conventional markets.”
advertisement

Crypto exchange Bitfinex has expanded beyond the digital asset space by launching equity index derivatives that settle in Tether (USDT) stablecoin.

The new derivatives — Europe 50 and Germany 30 perpetual swaps — offer exposure to traditional stock markets. Europe 50 represents the STOXX Europe 50 index covering 50 stocks from 18 European countries. Germany 30 represents the Deutscher Aktien Index (DAX) of the 30 largest German stocks that trade on the Frankfurt Stock Exchange.

This is the first time a crypto exchange has launched an equity product. "CME moved into crypto with bitcoin futures. Now Bitfinex is moving into conventional markets," Bitfinex CTO Paolo Ardoino told The Block.

Ardoino said Bitfinex wanted to broaden the investment universe and enable crypto traders to get exposure to traditional markets on a single platform. "High-frequency traders account for about 80% volume on our platform. We are attuned to their requirements and see this offering as being able to enhance cross-asset trading strategies," Ardoino told The Block.

Europe 50 and Germany 30 perpetual swaps offer up to 100x leverage. They settle in USDT and therefore helps reduce forex and interest rate risks, said Bitfinex. "The fact that settlement is in USDT is important as this makes trading seamless, efficient, and powers interesting plays between different asset classes," said Ardoino.

The new derivatives are available in select jurisdictions and only to "verified users." It means traders would be required to go through the due diligence process to verify and confirm their identity, source of funds, and banking relationships, Ardoino told The Block.

Bitfinex recently also launched a forex offering, i.e., euro, British pound, and Japanese yen perpetual contracts that settle in Tether.


© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

The Era of dFMI for Institutional Digital Asset Markets

Post-trade in capital markets today operates primarily based on provision of balance-sheet to off-set counterparty risk, either directly or indirectly, via settlement agents, CCPs and CSDs etc.  The issues with this ‘hub and spoke’ model are well known, including the resulting massive duplication of data, bifurcated processes, concentration of risk and subsequent deployment of capital and resources that could be better utilized. 
Read Full Story
Sponsored Post

Retail traders are here to stay, says eToro's US CEO

On this episode of The Scoop, eToro's newly appointed US lead Lule Demmissie explained why she doesn't see retail's newfound presence in the market subsiding anytime soon and how eToro plans to capitalize on growing the business across cryptocurrencies and stock trading.
Read Full Story
Jan 26, 2022, 4:23PM UTC
More